Why the G Plan is the most Popular Medicare Supplement

Even back when we had the F plan, it accounted for 80% of the Medigap market.

The new G plan has taken the rein since the F plan left the market for new enrollees and for similar reasons.

We'll talk about the obvious reasons but also touch on the less-known superpower of this plan (Excess Charges!)

As for our credentials...

Just like it's predecessor, the G plan makes up the majority of the medigap market.

Let's look at why along these lines:

• What does the G plan cover
  
• How does the G plan compare with other supplements
  
• The G plan and Excess Charges
  
• How to quote and compare G plans in California
  
• Who has the best pricing for G plans now
  
• What's the G extra or inspire?
  
• How to enroll in the G plan

Let's get started.  

What does the G plan cover

First, it's important to understand that the G plan is a Medicare supplement.  Medicare supplements are the senior equivalent of PPO plans in that you can see any provider (nationwide) that accepts Medicare.

Medicare supplements fill in the gaps of what Medicare doesn't cover with different plan options from A - L.  

G happens to be the most comprehensive of the medigap plans.

It fills in all the major holes of traditional Medicare except for the part B (doctor) deductible which is a bit over $240 (goes up each year).

Here's the quick take:

We've already looked at why the 20% is the real reason not to go with just Medicare alone.

There's no cap on this 20% which means you could pay this amount...indefinitely!

A $100K bill can add up to $20K for you.  It's the wrong time of life to take this gamble with the state of healthcare costs.

The only difference between the G plan and the old F plan is coverage of the Part B deductible so roughly $240+/year.

Interestingly, the premium difference between the two can be $100's of dollars each year which is why many people with the old F plan are moving to the G plan.

This will only continue since the F plan "book" is shrinking (no new people coming on) and as a result, there's a rate spiral that occurs over time.

So...let's go practical with this...how do you compare the G plan with the other supplements.

How does the G plan compare with other supplements?

They all have the same networks, so it really boils down to benefits and price.

Let's first look at what they have in common:

• All plans cover the Part A 20% coinsurance (the most important piece) at 100%
  
• All plans cover Part B (doctor) with 20% coinsurance but with different cost-sharing
  
• All plans but A cover the Part A deductible (but with different cost-sharing)

You'll notice some of the plans build in a percentage that you have to pay up to a max out of pocket.

This means that your total exposure will be higher if you get sick or hurt...up to those levels.

Now let's talk about the glaring difference:

Only the F and G plan cover Excess charges!

This is really the only reason to go with the G plan rather than say..the C plan.

For this reason, almost every carrier has a G plan offering but not all have the C and other supplement plans.

We're happy to help you compare the different supplements and there's no cost for our assistance!

Let's touch base on the Excess charge since many people new to Medicare are unfamiliar this term.

The G plan and Excess Charges

In California, a doctor can choose to charge more than 15% over what Medicare allows and still be considered a Medicare provider (in-network).

The problem with this charge is that there's no "cap" to it.  As you know with the 20% coinsurance, we want caps!

A $10K charge may result in $1500 out-of-pocket due to these excess charges and that defeats the whole point of maybe saving a few $100/year in premium by going with a lesser plan.  

It's always the big un-capped bill that we want to address with supplements and for new enrollees, the G plan is the only Medigap option that covers Excess charges.